UNINFORMED: Swedish Hedge Fund Closes After Losing $4 Billion During COVID
Posted on 04/24/2021
IPM Informed Portfolio Management AB (IPM) is a Sweden-based hedge fund that is majority-owned by Stockholm-based investment firm Catella AB. IPM is a quantitative hedge fund relying on models to devise its strategies. The hedge fund decided to close office and return investor capital after losing around US$ 4 billion during the COVID-19 pandemic. At May 2019, Catella AB owned 60.6% in IPM.
In late 2019, IPM had AUM near US$ 5 billion. In 2020, AUM dropped to US$ 2 billion.
“The recent investment market for systematic macro-funds has unfortunately been very challenging and IPM has had weak returns and large capital outflows,” Catella said in a statement on Thursday. “IPM will ensure that all investors are treated fairly. This includes that all investors will be able to redeem their capital in the coming months according to each fund’s specific liquidity rules.”
In May 2019, IPM decided to close down its Systematic Equity product (a long-only value equity based strategy), while focusing on the Systematic Macro product.